The Board of Directors of Maruti Suzuki India (MSIL) at its meeting held on Tuesday approved the acquisition of 12,84,11,07,500 equity shares of ₹10 each representing 100 per cent paid-up equity share capital of Suzuki Motor Gujarat (SMG), owned by Suzuki Motor Corporation, Japan (SMC), for a total purchase consideration of ₹12,841.1 crore.

The purchase consideration payable by the company for such purchase of 100 per cent of SMG’s equity shares will be discharged through issue and allotment of 1,23,22,514 equity shares of the company having face value of ₹5 each to SMC, at a price of ₹10,420.85 per equity share, on a preferential basis, MSIL said in a filing to stock exchanges.

The acquisition of purchase shares will be subject to such regulatory/statutory approvals as may be required under applicable laws including the approval of the minority shareholders of the company through postal ballot, MSIL said.

Valuation report

“Presently, SMC holds 100 per cent equity capital of SMG. The acquisition of 100 per cent equity capital of SMG by MSIL from SMC is a related party transaction and shall be done according to the prevalent laws and regulations. The transaction is being done at arm’s length,” MSIL said.

The proposed transaction is being taken care by the valuation report issued by RBSA Valuation Advisors LLP, Independent Registered Valuer, it said.

The voting for shareholder approval begins on Wednesday and will go on till November 16. The indicative time period for completion of the acquisition is expected before March 31, 2024, the company added.


In August, MSIL’s board had approved issuance of shares on a preferential basis to SMC as consideration for acquisition of 100 per cent stake in SMG. Post the acquisition, SMG would become a wholly-owned subsidiary of MSIL.

MSIL board, in its meeting on July 31 had approved termination of the contract manufacturing agreement with SMG and acquiring its shares at a price to be determined in accordance with all applicable laws and regulations.

A fully-owned subsidiary of SMC, SMG supplies its entire production exclusively to Maruti Suzuki India. SMG, which was incorporated in 2014, has a production facility with an installed capacity of 7.5 lakh units per annum.

Shares of MSIL closed at ₹10,742.05 apiece on the BSE on Tuesday, up 0.31 per cent.